Natixis Funds Trust I


Principal Amount (‡)	Description	Value(†)
Bonds and Notes — 94.4% of Net Assets
	ABS Home Equity — 1.5%
$139,242	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A2, 3.872%, 3/25/2020	$	135,609
1,095,000	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		653,715
3,279,990	Countrywide Asset-Backed Certificates, Series 2006-S4, Class A3, 5.804%, 7/25/2034		1,441,954
1,051,206	Residential Asset Securities Corp., Series 2003-KS10, Class AI4, 4.470%, 3/25/2032		837,334

			3,068,612

	Automotive — 0.7%
955,000	Ford Motor Co., 7.450%, 7/16/2031		267,400
865,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		597,652
810,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		527,607

			1,392,659

	Banking — 5.4%
1,970,000	Bank of America Corp., 5.750%, 12/01/2017		1,966,929
1,670,000	Citigroup, Inc., 6.500%, 8/19/2013		1,685,174
625,000	Goldman Sachs Group, Inc. (The), 5.300%, 2/14/2012		589,904
1,040,000	Goldman Sachs Group, Inc. (The), 6.150%, 4/01/2018		999,399
2,160,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		1,753,635
735,000	HSBC Finance Corp., 7.000%, 5/15/2012		736,116
825,000	JPMorgan Chase & Co., 6.000%, 1/15/2018		870,807
800,000	Morgan Stanley, 4.000%, 1/15/2010		776,765
615,000	Morgan Stanley, 5.375%, 10/15/2015		529,397
100,000	Morgan Stanley, 6.750%, 4/15/2011		98,393
435,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		381,621
515,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		425,279

			10,813,419

	Brokerage — 2.2%
1,365,000	Bear Stearns Cos., Inc. (The), 6.400%, 10/02/2017		1,418,478
1,670,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		1,746,863
1,230,000	Merrill Lynch & Co., Inc., Series C, MTN, 5.450%, 2/05/2013		1,182,333

			4,347,674


Principal Amount (‡)	Description	Value(†)
	Building Materials — 0.5%
$815,000	Owens Corning, 7.000%, 12/01/2036	$	534,429
795,000	USG Corp., 6.300%, 11/15/2016		486,937

			1,021,366

	Commercial Mortgage-Backed Securities — 5.7%
795,000	Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A2, 5.165%, 9/10/2047		712,386
850,000	Banc of America Commercial Mortgage, Inc., Series 2006-1, Class A2, 5.334%, 9/10/2045		736,137
1,305,000	Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A2, 5.634%, 4/10/2049		1,022,976
1,245,000	Bear Stearns Commercial Mortgage Securities, Inc., Series 2005-PW10, Class A2, 5.270%, 12/11/2040		1,121,037
990,000	Bear Stearns Commercial Mortgage Securities, Inc., Series 2006-PW13, Class A4, 5.540%, 9/11/2041		776,581
710,000	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD2, Class A2, 5.408%, 1/15/2046		616,406
960,000	Credit Suisse Mortgage Capital Certificates, Series 2008-C1, Class A3, 6.218%, 2/15/2041(b)		742,143
1,800,000	Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A2, 5.117%, 4/10/2037		1,633,834
543,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039		413,295
1,500,000	GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, 4.751%, 7/10/2039		1,209,924
1,140,000	GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4, 5.560%, 11/10/2039		904,241
1,710,000	LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A3, 4.647%, 7/15/2030		1,496,263

			11,385,223

	Construction Machinery — 0.1%
220,000	Caterpillar Financial Service Corp., 5.450%, 4/15/2018		205,983

	Diversified Manufacturing — 1.5%
1,200,000	Crane Co., 6.550%, 11/15/2036		930,934


Principal Amount (‡)	Description	Value(†)
	Diversified Manufacturing — continued
$2,145,000	General Electric Co., 5.250%, 12/06/2017	$	2,138,451

			3,069,385

	Electric — 2.2%
290,000	AES Corp., 7.750%, 10/15/2015		243,600
570,000	AES Corp., 8.000%, 10/15/2017		467,400
950,000	Enersis SA, Chile, 7.375%, 1/15/2014		989,369
355,000	Florida Power & Light Co., 4.950%, 6/01/2035		345,446
690,000	Ipalco Enterprises, Inc., 144A, 7.250%, 4/01/2016		565,800
590,000	Southern California Edison Co., 7.625%, 1/15/2010		603,711
1,025,000	Virginia Electric & Power Co., 8.875%, 11/15/2038		1,297,202

			4,512,528

	Food & Beverage — 2.5%
560,000	Anheuser-Busch Cos, Inc., 4.500%, 4/01/2018		471,987
805,000	Anheuser-Busch Cos, Inc., 6.450%, 9/01/2037		724,951
1,485,000	Dean Foods Co., 7.000%, 6/01/2016		1,262,250
815,000	Dr Pepper Snapple Group, Inc., 144A, 6.820%, 5/01/2018		803,877
915,000	Kraft Foods, Inc., 6.125%, 8/23/2018		902,075
925,000	Kraft Foods, Inc., 6.875%, 2/01/2038		924,357

			5,089,497

	Government Guaranteed — 1.6%
910,000	JPMorgan Chase & Co., 2.125%, 6/22/2012		913,790
210,000,000	Oesterreichische Kontrollbank AG, 1.800%, 3/22/2010 (JPY)		2,348,134

			3,261,924

	Government Owned - No Guarantee — 6.5%
7,795,000	FNMA, 4.375%, 9/13/2010		8,228,659
3,225,000	FNMA, 5.375%, 6/12/2017		3,767,819
1,098,000	Pemex Project Funding Master Trust, 7.875%, 2/01/2009		1,099,047

			13,095,525

	Healthcare — 0.9%
575,000	HCA, Inc., 7.500%, 12/15/2023		270,049
450,000	HCA, Inc., 9.125%, 11/15/2014		417,375
485,000	Hospira, Inc., 6.050%, 3/30/2017		393,926


Principal Amount (‡)	Description	Value(†)
	Healthcare — continued
$670,000	Medco Health Solutions, 7.250%, 8/15/2013	$	649,617

			1,730,967

	Hybrid ARMs — 0.2%
387,836	JPMorgan Mortgage Trust, Series 2006-A7, Class 1A3, 5.879%, 1/25/2037(b)		352,200

	Independent Energy — 0.9%
290,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		221,850
385,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		277,200
830,000	TEPPCO Partners LP, 7.550%, 4/15/2038		621,102
825,000	XTO Energy, Inc., 6.375%, 6/15/2038		725,906

			1,846,058

	Local Authorities — 2.6%
7,260,000	Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011 (AUD)		5,269,371

	Media Cable — 2.1%
1,470,000	Comcast Corp., 6.950%, 8/15/2037		1,547,986
755,000	Cox Communications, Inc., 6.750%, 3/15/2011		734,930
1,085,000	CSC Holdings, Inc., Senior Note, Series B, 7.625%, 4/01/2011		1,022,613
873,000	Time Warner Cable, Inc., 6.550%, 5/01/2037		836,448

			4,141,977

	Metals & Mining — 0.5%
890,000	Steel Dynamics, Inc., 7.375%, 11/01/2012		649,700
710,000	United States Steel Corp., 6.650%, 6/01/2037		362,342

			1,012,042

	Mortgage Related — 27.0%
887,364	FHLMC, 4.000%, 7/01/2019		899,811
1,644,466	FHLMC, 4.500%, 12/01/2034		1,670,394
421,116	FHLMC, 5.000%, 11/01/2018		435,000
1,151,007	FHLMC, 5.500%, with various maturities in 2018(c)		1,190,490
1,471,055	FHLMC, 5.946%, 11/01/2036(b)		1,526,772
173,820	FHLMC, 6.000%, 6/01/2035		179,640
698,127	FNMA, 4.000%, 6/01/2019		709,565
4,944,655	FNMA, 4.500%, with various maturities from 2019 to 2035(c)		5,052,513


Principal Amount (‡)	Description	Value(†)
	Mortgage Related — continued
$5,770,000	FNMA, 5.000%, 2/13/2017	$	6,546,002
904,229	FNMA, 5.500%, 5/01/2018		935,586
8,380,237	FNMA, 6.000%, with various maturities from 2016 to 2039(c)		8,644,004
1,260,871	FNMA, 6.042%, 2/01/2037(b)		1,290,794
3,859,301	FNMA, 6.500%, with various maturities from 2029 to 2037(c)		4,014,661
206,180	FNMA, 7.000%, with various maturities in 2030(c)		218,157
201,019	FNMA, 7.500%, with various maturities from 2024 to 2032(c)		212,850
5,686,652	GNMA, 5.000%, with various maturities from 2035 to 2038(c)		5,845,630
9,094,612	GNMA, 5.500%, with various maturities from 2034 to 2038(c)		9,386,235
4,023,589	GNMA, 6.000%, with various maturities from 2029 to 2037(c)		4,160,322
622,444	GNMA, 6.500%, with various maturities from 2028 to 2032(c)		654,240
321,599	GNMA, 7.000%, with various maturities from 2025 to 2029(c)		340,662
113,453	GNMA, 7.500%, with various maturities from 2025 to 2030(c)		120,300
60,016	GNMA, 8.000%, 11/15/2029		64,029
102,431	GNMA, 8.500%, with various maturities from 2017 to 2023(c)		109,489
20,137	GNMA, 9.000%, with various maturities in 2016(c)		21,526
41,173	GNMA, 11.500%, with various maturities from 2013 to 2015(c)		47,057

			54,275,729

	Non-Captive Consumer — 0.7%
245,000	SLM Corp., MTN, 5.050%, 11/14/2014		163,045
120,000	SLM Corp., Series A, 5.000%, 6/15/2018		79,204
215,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		153,837
35,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		23,621
420,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		254,791


Principal Amount (‡)	Description	Value(†)
	Non-Captive Consumer — continued
$825,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018	$	652,262

			1,326,760

	Non-Captive Diversified — 3.3%
7,000	CIT Group, Inc., 5.400%, 2/13/2012		5,648
63,000	CIT Group, Inc., 5.400%, 1/30/2016		43,866
120,000	CIT Group, Inc., 5.800%, 10/01/2036		79,254
11,000	CIT Group, Inc., 5.850%, 9/15/2016		7,745
1,090,000	CIT Group, Inc., 12.000%, 12/18/2018		839,300
109,000	CIT Group, Inc., GMTN, 5.000%, 2/13/2014		79,222
103,000	CIT Group, Inc., GMTN, 5.000%, 2/01/2015		72,512
35,000	CIT Group, Inc., MTN, 5.125%, 9/30/2014		24,981
149,000	CIT Group, Inc., Series A, GMTN, 6.000%, 4/01/2036		94,166
120,000	CIT Group, Inc., Series A, MTN, 5.650%, 2/13/2017		83,442
95,000	General Electric Capital Corp., 5.875%, 1/14/2038		92,992
1,180,000	General Electric Capital Corp., Series A, MTN, 5.625%, 9/15/2017		1,187,014
1,842,000	GMAC LLC, 6.625%, 5/15/2012		1,433,592
571,000	GMAC LLC, 8.000%, 11/01/2031		339,397
1,430,000	HKCG Finance Ltd., 144A, 6.250%, 8/07/2018		1,497,061
465,000	International Lease Finance Corp., 5.000%, 4/15/2010		377,417
205,000	International Lease Finance Corp., 6.375%, 3/25/2013		139,256
120,000	International Lease Finance Corp., Series R, MTN, 5.300%, 5/01/2012		84,288
40,000	International Lease Finance Corp., Series R, MTN, 5.550%, 9/05/2012		27,593
285,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		186,177

			6,694,923

	Oil Field Services — 0.4%
190,000	Nabors Industries, Inc., 6.150%, 2/15/2018		163,465
750,000	Weatherford International Ltd., 6.500%, 8/01/2036		562,997

			726,462

	Paper — 0.8%
565,000	Georgia-Pacific Corp., 7.375%, 12/01/2025		361,600


Principal Amount (‡)	Description	Value(†)
	Paper — continued
$755,000	Georgia-Pacific Corp., 7.750%, 11/15/2029	$	475,650
735,000	Georgia-Pacific Corp., 8.000%, 1/15/2024		496,125
365,000	Georgia-Pacific Corp., 8.875%, 5/15/2031		251,850

			1,585,225

	Pipelines — 0.5%
1,150,000	NGPL Pipeco LLC, 144A, 6.514%, 12/15/2012		1,091,372

	Property & Casualty Insurance — 0.2%
475,000	Willis North America, Inc., 6.200%, 3/28/2017		329,073

	Real Estate Investment Trusts — 0.5%
640,000	Colonial Realty, LP, Senior Note, 5.500%, 10/01/2015		380,282
1,250,000	iStar Financial, Inc., Senior Note, 6.000%, 12/15/2010		525,000

			905,282

	Retailers — 0.5%
1,295,000	Home Depot, Inc., 5.875%, 12/16/2036		1,015,412

	Sovereigns — 3.6%
36,000,000	Canadian Government, 1.900%, 3/23/2009 (JPY)		397,886
5,595,000	Canadian Government, 5.000%, 6/01/2014 (CAD)		5,243,755
180,000	Indonesia Government International Bond, 144A, 6.625%, 2/17/2037		131,400
1,705,000	Indonesia Government International Bond, 144A, 7.750%, 1/17/2038		1,415,150

			7,188,191

	Supermarkets — 1.1%
2,095,000	Kroger Co. (The), 6.900%, 4/15/2038		2,195,325

	Technology — 2.4%
745,000	Corning, Inc., 7.250%, 8/15/2036		600,169
540,000	Equifax, Inc., 7.000%, 7/01/2037		337,871
1,180,000	Fiserv, Inc., 6.125%, 11/20/2012		1,108,651
1,660,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		680,600
605,000	Lender Processing Services, Inc., 8.125%, 7/01/2016		539,206
85,000	Motorola, Inc., 6.500%, 9/01/2025		42,071
115,000	Motorola, Inc., 6.500%, 11/15/2028		50,804
185,000	Motorola, Inc., 6.625%, 11/15/2037		86,950
295,000	Nortel Networks Ltd., 6.875%, 9/01/2023		17,700


Principal Amount (‡)	Description	Value(†)
	Technology — continued
$920,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026	$	55,200
195,000	Pitney Bowes, Inc., 5.250%, 1/15/2037		171,679
870,000	Xerox Corp., 6.350%, 5/15/2018		680,422
683,000	Xerox Corp., 6.400%, 3/15/2016		532,740

			4,904,063

	Tobacco — 1.2%
1,570,000	Altria Group, Inc., 9.700%, 11/10/2018		1,696,903
1,185,000	Reynolds American, Inc., 7.250%, 6/15/2037		797,942

			2,494,845

	Treasuries — 9.0%
566,000	U.S. Treasury Bond, 4.500%, 2/15/2036		751,984
17,630,722	U.S. Treasury Inflation Indexed Bond, 2.375%, 1/15/2025		17,327,686

			18,079,670

	Wireless — 2.8%
10,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		4,200
15,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		6,300
1,385,000	SK Telecom Co., Ltd., 144A, 6.625%, 7/20/2027		1,152,882
3,970,000	Sprint Capital Corp., 6.875%, 11/15/2028		2,362,150
15,000	Sprint Capital Corp., 6.900%, 5/01/2019		10,650
1,420,000	True Move Co. Ltd., 144A, 10.750%, 12/16/2013		582,200
1,200,000	Verizon Wireless Capital LLC, 144A, 8.500%, 11/15/2018		1,406,013

			5,524,395

	Wirelines — 2.8%
2,653,000	Embarq Corp., 7.995%, 6/01/2036		1,790,775
935,000	Frontier Communications Corp., 7.875%, 1/15/2027		542,300
210,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		137,550
460,000	Qwest Corp., 6.875%, 9/15/2033		273,700
850,000	Qwest Corp., 7.250%, 9/15/2025		569,500
255,000	Qwest Corp., 7.250%, 10/15/2035		159,375
1,190,000	Qwest Corp., 7.500%, 6/15/2023		833,000
1,700,000	Telecom Italia Capital SA, 7.721%, 6/04/2038		1,396,125

			5,702,325

	Total Bonds and Notes (Identified Cost $198,983,105)		189,655,462


Shares (‡)	Description	Value(†)
Preferred Stocks — 0.2%
	Diversified Financial Services — 0.1%
532	Preferred Blocker, Inc., 9.000%	$	133,000

	Thrifts & Mortgage Finance — 0.1%
256,000	Federal National Mortgage Association, 6.750%(d)(e)		166,400
4,200	Federal National Mortgage Association, 8.250%(d)(e)		3,486

			169,886

	Total Preferred Stocks (Identified Cost $1,717,400)		302,886

Principal Amount (‡)
Short-Term Investment — 5.2%
$10,469,113	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/2008 at 0.000% to be repurchased at $10,469,113 on 1/02/2009, collateralized by $10,385,000 Federal National Mortgage Association, 3.530% due 8/25/2010 valued at $10,683,569, including accrued interest(f) (Identified Cost $10,469,113)		10,469,113

	Total Investments — 99.8% (Identified Cost $211,169,618)(a)		200,427,461
	Other assets less liabilities—0.2%		456,983

	Net Assets — 100.0%	$	200,884,444

(‡)

Principal amount is in U.S. dollars unless otherwise noted.

(†)

Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Fund by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional size-trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Equity securities, including closed-end investment companies and exchange-traded funds, for which market quotations are readily available, are valued at market value, as reported by pricing services recommended by the investment adviser and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ Market. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Fund may be valued on the basis of a price provided by a principal market maker. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Fund’s investment adviser using consistently applied procedures under the general supervision of the Board of Trustees. Investments in other open-end investment companies are valued at their net asset value each day.

The Fund may hold securities traded in foreign markets. Foreign securities are valued at the market price in the foreign market. However, if events occurring after the close of the foreign market (but before the close of regular trading on the New York Stock Exchange) are believed to materially affect the value of those securities, such securities are fair valued pursuant to procedures approved by the Board of Trustees. When fair valuing securities, the Fund may, among other things, use modeling tools or other processes that may take into account factors such as securities market activity and/or significant events that occur after the close of the foreign market and before the Fund calculates its net asset value.

The books and records of the Fund are maintained in U.S. dollars. The value of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period.

(a)

Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):

At December 31, 2008, the net unrealized depreciation on investments based on a cost of $211,395,569 for federal income tax purposes was as follows:


Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	7,785,561
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(18,753,669	)

Net unrealized depreciation	$	(10,968,108	)

At September 30, 2008, the Fund had a capital loss carryforward of approximately $19,696,181 of which $19,514,453 expires on September 30, 2010 and $181,728 expires on September 30, 2014. These amounts may be available to offset future realized capital gains, if any, to the extent provided by regulations.

(b)

Variable rate security. Rate as of December 31, 2008 is disclosed.

(c)

The Fund’s investment in mortgage related securities of the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and Government National Mortgage Association are interests in separate pools of mortgages. All separate investments in securities of each issuer which have the same coupon rate have been aggregated for the purpose of presentation in the Portfolio of Investments.

(d)

Non-income producing security.

(e)

Future dividend payments have been eliminated as the issuer has been placed in conservatorship.

(f)

It is the Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. The repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities.

144A

Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At December 31, 2008, the value of these securities amounted to $8,645,755 or 4.3% of net assets.


ABS		Asset-Backed Securities
ARM		Adjustable Rate Mortgage
FHLMC		Federal Home Loan Mortgage Corporation
FNMA		Federal National Mortgage Association
GMTN		Global Medium Term Note
GNMA		Government National Mortgage Association
MTN		Medium Term Note

AUD		Australian Dollar
CAD		Canadian Dollar
JPY		Japanese Yen

Fair Value Measurements

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, effective October 1, 2008. FAS 157 establishes a hierarchy for net asset value determination purposes in which various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

•

Level 1 - quoted prices in active markets for identical investments;

•

Level 2 - prices determined using other significant observable inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar investments, interest rates, credit risk, etc.);

•

Level 3 - prices determined using significant unobservable inputs for situations where quoted prices or observable inputs are unavailable such as when there is little or no market activity for an investment, (unobservable inputs reflect the Fund’s own assumptions in determining the fair value of investments and would be based on the best information available).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2008:


Valuation Inputs	Investments in Securities
Level 1 - Quoted Prices	$	10,635,513
Level 2 - Other Significant Observable Inputs		187,510,833
Level 3 - Significant Unobservable Inputs		2,281,115

Total	$	200,427,461

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of December 31, 2008:


Assets	Investments in Securities
Balance as of September 30, 2008	$	7,086,547
Realized gain (loss)		4,227
Change in unrealized appreciation (depreciation)		(1,649,439	)
Net purchases (sales)		931,678
Net reclassifications to/from level 3		(4,091,898	)

Balance as of December 31, 2008	$	2,281,115

New Accounting Pronouncement

In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”), was issued and will be effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about funds’ derivative and hedging activities. Management is currently evaluating the impact the adoption of FAS 161 may have on the Fund’s financial statement disclosures.

Net Asset Summary at December 31, 2008 (Unaudited)


Mortgage Related	27.0	%
Treasuries	9.0
Government Owned – No Guarantee	6.5
Commercial Mortgage-Backed Securities	5.7
Banking	5.4
Sovereigns	3.6
Non-Captive Diversified	3.3
Wirelines	2.8
Wireless	2.8
Local Authorities	2.6
Food & Beverage	2.5
Technology	2.4
Electric	2.2
Brokerage	2.2
Media Cable	2.1
Other Investments, less than 2% each	14.5
Short-Term Investment	5.2

Total Investments	99.8
Other assets less liabilities	0.2

Net Assets	100.0	%

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.